I have set up two tax rates based on uk + eu tax (including vat) and rest of the world tax rate (excluding vat).
All works fine and the correct tax rates show on the checkout and in the invoices but there is a problem: if you purchase something and you are from a non ey country then the frontend price reduces by 17.5% - the tax rate i have configured.
I would have thought that the prices shown on front end wouldnt change?
Any ideas?
That's a setting you can control in the admin. I believe it is called "catalog prices include tax" or something like that...
Silvo is right but I would say that this is exactly what you'd want to happen. If you are selling B2C in the UK (and many other EU countries) then you have to show the prices in the catalog inclusive of VAT. However, if your customer has registered and has a shipping address outwith the EU then you want them to be shown the price net of VAT because you shouldn't be charging them VAT.
Related
I have set up a shop using Prestashop. I created a tax rule for my products and entered the VAT rates of all EU countries we sell to. When a user orders a product the VAT amount is calculated according to the address/country he entered in the checkout process, this works fine.
Unfortunately the VAT rate when the user is not connected is wrong. It should be 19% and not 17%, thus the products in the shop show wrong prices, e.g. 59,97 € instead of 60 €.
I haven't found out how the Prestashop frontend determines the VAT rate to be used to calculate the product price. There is no default VAT rate setting and the first rate in the table (lowest ID) has a VAT rate of 19%.
Does anybody know how that works ?
Thank you very much.
You can set default tax rule for each product, when editing a product in back office.
You have the ability to decide if a visitor/guest customer group should see the prices with/without
taxes applied by using the setting in Shop Parameters > Customer Settings > Groups
(there's a "Price display method" selector there).
If you want your visitor's context country being set without having them to actually enter an address,
you should enable native Geolocation (International > Localization > Geolocation).
I found out how this works. Under International -> Localization you can set the store's default country. Set it to the country you like and the prices will be shown with the vat rate of that country if configured in the tax rules.
Have a Magento site ver. 1.7.0.2
We have one store set up for, primary is UK, but also want to offer global sales (without multiple stores setup).
So we offer 3 selectable currencies on the site: UK - GBP (main), EU - Euro, US - USD
All prices are excluding vat/tax with a vat breakdown displayed at the cart and checkout.
For UK there is 20% VAT
For EU there is also 20% with a option to add valid EU vat number (which removes the VAT)
This all works fine.
However if you select the USD currency and add a item to the cart it gives a vat breakdown (20%), even though we dont want to add tax when USD is selected.
I should note that once you do checkout and have told the site you are in the US then is correctly removes the vat/tax.
So to clarify, we want it so that if the USD currency is selected on the site no tax/vat is added to the product price in the cart.
Is this possible?
Thanks
D
I would suggest setting up multi-store configuration, using a store front for each location (UK/US/EU)
This will allow you to set the default country for each sub-store and then you can make the USA the default shipping destination / country for the US store, this will immediately apply the tax rules for this country when purchasing items from the US Store Front.
You said there's no multi-store, setup, but do you have a good reason why you don't want to use this kind of setup? it will allow you to do what you need.
The issue with your setup is that there's no way for the store to know where the customer is before they either login or select during the checkout, this is because you will only have one default location for all currencies.
There may well be a way of doing it like this, but not that I know of. This is what the store front and/or multistore is meant for and good at.
I am finalising my Magento store but have the following problem:
UK VAT registered store. VAT rules set up using following: http://www.mcnab.co/blog/e-commerce/magento/magento-vat-setup-for-countries-trading-worldwide/
Product price is set at £36 and VAT standard.
In Config > Sales > Tax, I have set both product and shipping to inclusive of tax.
In Config > Sales > Shipping Settings, I have set Origin to UK.
When I check out as EU customer, price is correct (£36 - including £6 of VAT). When I checkout as Non-EU, price is incorrect (£30 - the EU price excluding VAT, it should by £36 with £0 VAT).
I've searched extensively, but only solutions I can find to this problem are the two configuration settings shown above. I'm running Magento 1.8.1, going crazy over this and hoping someone can put me out of my misery?
Thanks!
You might have already had the answer to this, so apologies if that is the case.
This is an accounting issue not a settings issue. VAT is not chargeable on 'export' sales outside of the EU, hence why the VAT element of the price is dropped.
Hope that helps.
Sparky
I am having an issue with Tax rates for different countries.
I need 3 types tax rates for different countries
Ireland & Europe 23%
UK 20%
Outside Europe 0%
For testing i have set up a Tax Rate (Manage Tax Rates & Zones) for the UK with a 20% rate. The Irish rate of 23% had previously been used for the past 2 years for all sales.
UK Tax Rate Setup
Tax Identifier - UK
Country - UK
State - *
Zip/Post Code - *
Rate Percent - 20.0000
Tax Titles - UK VAT
I have also gone to tax in the config section and set the tax to be calculated on shipping address.
Shipping -> Configuration -> Tax -> Tax Calculation based on -> Shipping Address
When i go to my site at FunkyChristmasJumpers.com and go to the checkout, its default country is Ireland and Tax is at 23%, i then change country in the address to the UK and onestepcheckout refreshes with no tax included? [pictures below]
Any help would be greatly appreciated.
Thanks
Fabio
Note:
We have 3 stores set up
Ireland, Europe - www.funkychristmasjumpers.com
UK - www.funkychristmasjumpers.co.uk
Worldwide - www.funkychristmassweaters.com
I just want this working on the Irish store and i feel it will automatically fall in place for the other stores.
We run magento 1.7 but magento 1.9 has a setting called Cross-Border Price consistency which help keep the gross price consistent through all stores. I do not want to upgrade so i think an option for us is this Gross price extension
http://www.magentocommerce.com/magento-connect/fixed-gross-price.html
Shipping prices are different for UK and Ireland on the Irish site
We run magneto ce 1.7
If your tax calculation is based on the shipping address, you need to setup your VAT rate of 23% for every country in the EU and then use these VAT rates in your tax rule.
If Magento can not find a tax rate for the shipping country, then no VAT will be applied.
The issue is the tax is not included on product price to logged in users.
Tax is added to product price correctly to guest users, in cart when shipping country is entered and on final checkout page.
[[Something I have noted is that the price displays correctly for both non logged in and newly created logged in user. The price will only be displayed without tax once the logged in user has an address (shipping) applied to their account. It appears that Magento is interpreting the taxable country as a country without a tax rule]]
The store is UK based retail site and should only display products with UK VAT 20% added.
Until recently this worked perfectly. Last week the product price started displaying without tax to logged in users with a shipping country set.
Default Country: UK
Shipping Orign Country: UK
Tax Calculation Based On: Shipping Origin
Default Tax Destination default country: UK
Price Display settings: include tax
Tax rules configured for EU VAT
Any advice on where to look and debug why a logged in user with valid country is resulting in magento showing product without tax.
Configuration screen grabs:-
Do your customers with account really have the correct Customer Group (could have changed due to an update)?
Is this Customer Group really correctly linked to the correct Tax Group?
Are the products correctly linked to this Tax Group?
Is it both incorrect in the display of product and in the price of the final order?
I suggest adding logs and debugging in the tax system to identify where exactly it is going wrong.
I guess it has something to do with the difference in customer group between guest (no customer group) and normal (logged in) customer.
This might seem obvious, but does your tax rule actually apply to the customer group for logged in customers?
Admin > customers > customer groups
Admin > sales > tax > manage tax rules
Just had this EXACT same problem today, cost me hours off my life. Here's the solution:
Configuration > Sales > Shipping Settings
Ensure that Origin > Country is set to the UK
Works like a charm for General and Not logged in customers, or anyone else in the Retail Customer group
I had the same problem....
It turned out to be the logged in user is outside the tax zip/postcode in the specified tax zone so no tax is applied (ie. magento assumes the user is overseas so taxes don't apply)
In the backend click Sales -> Tax -> Manage Tax Zones and Rates. Edit the tax rate and make sure "Zip/Post is range?" is set to YES.
Lookup you postcode ranges in which that tax rate apples (ie. here is australia the range is from 0800 - 8000 to account for all postcodes in all states and territories). Enter in your ranges.
Save and you are all done :)